In Nigeria, the official foreign exchange market has been grappling with a significant challenge—struggling to attain a daily forex turnover exceeding the $300 million threshold, a level last observed during the initial phases of forex unification. This lackluster performance serves as a stark indicator of the waning interest that forex traders have shown in Nigeria’s official exchange rate market. Upon conducting a meticulous analysis, it becomes evident that the average daily turnover in the Investor and Exporter (I&E) window, where official forex transactions transpire, has lingered just slightly above the $100 million mark since the inception of the exchange rate…
Author: Temitope N.
In a significant development, institutional investors hailing from the United States, gathered under the banner of the Institutional Investor Network, have expressed a keen interest in expanding their involvement in the Nigerian capital market. This endeavor reflects a promising avenue for enhanced cooperation and investment between the United States and Nigeria. The endeavor was the focus of a substantive discussion, spearheaded by the Nigerian Exchange Limited (NGX), and was facilitated by Chapel Hill Denham, with the delegation from the United States composed of prominent entities such as the United States Agency for International Development (USAID), Prosper Africa, and Power Africa.…
The dollar exhibited relative stability but remained close to a two-week low on Thursday, largely influenced by the Federal Reserve’s cautious approach, as investors eagerly awaited crucial data regarding US inflation. As the dollar’s dynamics continue to be a focal point of global financial markets, the naira faced challenges in the parallel market due to persistently high demand exceeding the available supply. Forex traders were seen trading the naira at N1045/$ against the dollar, clearly indicating growing scarcity. This recent downward trend in the naira’s value against the US dollar has been a significant cause for concern. Since the mid-June…
The Central Bank of Nigeria (CBN) has taken a significant step in revising its policies and regulations concerning foreign exchange by lifting the ban on 43 items that were previously restricted under the leadership of Godwin Emefiele. The announcement came through a circular issued by the apex bank on October 12, 2023, signifying a shift in the CBN’s approach to the country’s forex market. In its circular, the CBN emphasized its commitment to a market-driven exchange rate system, championing the ‘Willing Buyer – Willing Seller’ principle. This change in approach signals a fundamental shift from the previous era, which was…
The Purchasing Managers’ Index (PMI) is an invaluable economic indicator, offering crucial insights into the economic well-being of Nigeria’s manufacturing and services sectors. In September 2023, Nigeria’s overall PMI registered at 51.1 points, surpassing the crucial 50.0-point threshold. This figure represented a notable 90 basis points (bps) increase from the previous month, which saw the PMI at a five-month low of 50.2 in August 2023. The September uptick in PMI was accompanied by a modest rise in business activities, marking the sixth consecutive month of growth in new orders. This growth in business activity can be attributed, at least in…
Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has raised concerns about the escalating conflict between Israel and Palestine, describing it as a new factor casting a shadow over the global economy. She made these comments during a press conference at the ongoing World Bank/IMF summit held in Marakesh, Morocco. Georgieva’s remarks underscore the potential economic implications of the conflict, especially in relation to oil markets and their influence on the broader international financial landscape. She emphasized the significance of closely monitoring the evolving situation and its specific impact on oil markets. “In terms of economic impact, we…
Yemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), has unveiled a promising outlook for the economic policies proposed by President Bola Tinubu’s administration. According to Cardoso, these policies have the potential to propel Nigeria’s Gross Domestic Product (GDP) to an impressive $1 trillion within the span of eight years. This proclamation, made on October 12, 2023, while Cardoso was in Marrakesh, Western Morocco, during the 2023 World Bank/IMF Annual Meetings, is undoubtedly a bold vision for the nation’s economic future. In his address, Cardoso emphasized that the CBN is committed to aligning its focus with the broader…
A bill with the potential to significantly alter the landscape of retirement within the armed forces has achieved a noteworthy milestone by successfully passing its second reading in the House of Representatives. Co-sponsored by Gaza Gbefwi, a legislator representing Nasarawa, and supported by seven other lawmakers, this proposed legislation aims to elevate the retirement age for members of the armed forces in Nigeria. Specifically, it seeks to raise the retirement age from 60 to 65 and extend the number of years of service from 35 to 40, marking a significant shift in the established norms governing military service. This legislative…
Capt. Ibrahim Mshelia, the Chief Executive Officer of West Link Airlines, a charter operator, has shared his perspective on civil aviation regulations in Nigeria, emphasizing their dual nature of being both progressive and limiting. In a conversation with our correspondent in Lagos, he discussed how these regulations, coupled with multiple charges imposed by the Federal Government, have adversely impacted the growth and sustainability of the Nigerian airline industry. Mshelia’s insights highlight the complex challenges faced by indigenous airlines and underscore the need for a more balanced and supportive regulatory environment. Mshelia began by acknowledging that the regulatory framework in Nigeria is,…
The Minister of Information and National Orientation, Mohammed Idris, has expressed the view that President Bola Tinubu’s administration is highly supportive of media freedom. He made these remarks during a visit to the Nigeria Television Authority (NTA) headquarters in Abuja on Tuesday. In his statement, Minister Idris emphasized the importance of adhering to the guidelines set forth by regulatory authorities for all media owners. He noted that the Nigerian press enjoys a high degree of freedom, allowing individuals to establish radio stations, television channels, or newspapers as long as they operate within the boundaries of rules and regulations stipulated by…
The Lagos State Government has officially announced its plans to temporarily suspend train services on the newly inaugurated Lagos Rail Mass Transit (LRMT) Blue Line for a brief period. This suspension is scheduled for Saturday, October 14, and Sunday, October 15, and is primarily intended to facilitate the transition from locomotive-powered operations to electric power. The decision to briefly close the Blue Rail Line is part of a strategic effort to significantly increase the number of train trips, thereby enhancing the capacity and efficiency of the rail system. Starting on Monday, October 16, 2023, the train trips on the Blue…
A new report released by Standard Chartered has cast a hopeful light on the future of Africa’s trade landscape, with projections that Africa’s total export could potentially reach a significant milestone of $1 trillion. This report, titled “Future of Trade: Africa Report,” delves into the prospects for trade within the African continent and provides insights into the role of the African Continental Free Trade Area (AfCFTA) as a pivotal driver for bolstering intra-African trade. The report outlines that Africa’s overall exports are poised to ascend to $952 billion by 2035. The full enactment of the AfCFTA presents a promising opportunity…
Between September 30 and October 6, a disturbing total of 128 crude oil theft incidents sent shockwaves throughout the oil-producing regions of the Niger Delta, painting a grim picture of ongoing illicit activities that threaten both the environment and the economy. This revelation stems from a comprehensive report featured in the weekly “Energy and You” series, a production by the Nigerian National Petroleum Company Limited (NNPCL) , and broadcast on the NTA News Network. In the span of just one week, the specific time frame in question, a plethora of illicit activities tarnished the oil sector’s integrity. The tally included…
The International Finance Corporation (IFC) and Morocco’s OCP have finalized an agreement securing a $106 million loan for the development of two solar plants in Morocco, further advancing OCP’s efforts to boost the production of low-carbon fertilizers in the country. On October 10, the Office Chérifien des Phosphates (OCP), a Moroccan state-owned enterprise specializing in phosphates and fertilizers, announced a significant partnership with the International Finance Corporation (IFC), marking a significant milestone in their ongoing efforts to support sustainable energy projects in Morocco. This financial injection aligns with OCP’s overarching mission to increase the production of low-carbon fertilizers in the…
Despite the assurance of a price reduction, the cost of BUA Cement has not seen a significant change and continues to retail at the old price range of between N5,300 and N5,500 in Lagos, as per findings by Infostride News. The announcement of the price reduction was made by Abdul Samad Rabiu, the Group Chairman of BUA Cement Plc. This announcement came following a meeting with President Bola Tinubu at the State House, Abuja, on September 15, 2023. Despite the expected implementation date being one week ago, the revised price has yet to be realized, with various cement retailers and…
The Manufacturers Association of Nigeria (MAN) has issued a compelling call to the government, urging the swift development of comprehensive policies to rectify persistent hindrances that are hampering local production in the country. This appeal was made by Otunba Francis Meshioye, the President of MAN, during the association’s 51st Annual General Meeting (AGM) news conference held in Lagos. The upcoming AGM, scheduled for October 17 to October 19, 2023, is themed “Setting the Agenda for Competitive Manufacturing Under the AFCFTA: What Nigeria Needs to Do.” According to Meshioye, this theme was carefully selected, taking into account the growth trajectory of…
The Imo State Government has embarked on a mission to enhance the aviation infrastructure at the Sam Mbakwe International Cargo Airport, Owerri. A deadline has been set, and the government is committed to completing the installation of Airfield Lighting (AFL) by the end of October 2023. This development was disclosed by Mrs. Rejoice Ndudinachi, the Owerri Airport Manager, during a fact-finding mission carried out by the Avia-cargo Roadmap Committee, established by the Federal Airports Authority of Nigeria (FAAN). The committee’s primary objective is to examine the challenges associated with cargo export in Nigeria and offer recommendations to bolster the country’s…
The Minister of Solid Minerals Development, Mr. Dele Alake, has made a resolute commitment to actively harness the untapped potential within Nigeria’s solid minerals sector as a strategic driver of the nation’s economic growth. This determination was expressed during a recent meeting with a delegation from the Miners Association of Nigeria, led by its National President, Mr. Dele Ayanleke. The Ministry of Solid Minerals Development officially disclosed this information in a statement issued by Alaba Balogun, the Head of Press and Public Relations at the ministry. Dr. Alake underscored the immense importance of the Federal Government’s strategic shift in focus…
Nigeria’s Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun, recently made a significant announcement regarding the country’s position as a highly sought-after investment destination. According to his statement delivered during an interview with journalists in Marrakech, Morocco, as part of the ongoing 2023 World Bank/International Fund (IMF) Annual Meetings, Nigeria has firmly established itself as the third-largest economy that investors are actively pursuing, following in the footsteps of economic powerhouses China and India. Edun’s remarks underlined the critical importance of proactive measures to harness this growing interest and translate it into tangible investments, particularly in key…
During a press briefing in preparation for the Nigeria Economic Summit scheduled for October 23 to 24, 2023, the Minister of Budget and Economic Planning, Sen. Atiku Bagudu, unveiled the federal government’s ambitious goals for the nation’s economic growth. First and foremost, the government aims to elevate Nigeria’s GDP per capita to $6,000 by 2030, nearly tripling the current figure of $2,184. Additionally, the plan is to reduce the unemployment rate to a mere 6%, down from the latest reported rate of 4.1%. To add to this, there are further aspirations to significantly decrease the poverty rate to an astonishingly…